ExxonMobil seeks permit to export Canadian LNG from British Columbia

The proposed project would be capable of liquefying up to 4 billion cubic feet/year of gas for export via tanker from one of several sites under consideration, according to an application with Canada's National Energy Board. If the application is approved, it could begin shipments as early as 2021.

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BY TOM FOWLER

IRVING -- ExxonMobil has asked Canadian officials for a
permit to export LNG from the Pacific coast, marking the fifth
such proposal for tapping into the country's large natural gas
reserves.

The proposed project would be capable of liquefying up to
4 billion cubic feet/year of gas for export via
tanker from one of several sites under consideration, according
to an application with Canada's National Energy Board. If the
application is approved and the company decides to move forward
with the project, it could begin shipments as early as
2021.

Exxon and Imperial Oil Resources -- the company's Canadian
affiliate -- previously filed an expression of interest
with the provincial government in British Columbia to develop
an LNG site there. The application filed this week considers
several sites, including Kitimat and Prince Rupert, British
Columbia.

Companies in Canada and the US are considering dozens
of projects to turn an overabundance of domestic natural-gas
production into an export bonanza. The US Department of
Energy is considering applications from 19 projects to ship natural gas to
countries that don't have free trade agreements with the US,
which include most energy hungry Asian nations such as China
and Japan.

Exxon is waiting for a non-FTA permit for its Golden Pass
terminal near Port Arthur, Texas. DOE already has approved
non-FTA permits for two of thse projects, Cheniere Energy's Sabine
Pass project in Louisiana and the Freeport LNG Expansion project in Texas.

A study commissioned by the US Department of Energy last
year found that exports would bring net economic benefits to
the United States, but Energy Secretary Ernest Moniz recently
said further approvals might be slow in coming if officials
feel the need to further study the cumulative impact of each
new project.

Earlier this week in Canada BG submitted a proposal for what
would be known as Prince Rupert LNG in British Columbia. A
proposed LNG project backed by Apache and Chevron received the
first LNG export license from Canadian officials in 2011.

Two others, one led by Shell and the smaller Douglas Channel
Energy Partnership project, also have been approved,
but none has reached a final investment decision to begin construction.

Dow Jones Newswires

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